ICICI Bank to introduce same-day cheque clearance from Oct 4

ICICI Bank has announced a major change to its cheque settlement process, aimed at reducing delays and improving customer convenience. From October 4, cheques submitted across the bank branches will be cleared and credited to accounts within one working day, according to the bank’s official website.

The action is consistent with the Reserve Bank of India‘s (RBI) new cheque clearing system, which aims to expedite settlements. The



previous batch-based procedure will be replaced by the new framework, which will clear the cheque within hours of submission.

The Cheque Truncation System (CTS), which sends an electronic image of the check and its details to the drawee bank, is currently used by banks. This removes the need for cheques to be physically transferred, but when deposited in drop boxes or automated teller machines, settlement usually takes two working days.